LNG

GasLog LNG Partners, with an operational fleet of 12 vessels, reported increased revenues and profits as it proceeded with the merger process with affiliate GasLog Ltd.

The company’s quarterly revenues increased 16 percent to $99.07 million from $85.45m in the same three months of 2022.

Net profits rose 4 percent to $36.37M from $34.98M in the prior-year first quarter.

The Partnership’s market overview and outlook said headline spot rates in the first quarter of 2023 for the most modern vessels fell to an average of about $71,560 per day, a fall of 78 percent compared with the average of the fourth quarter of 2022.

Fall in rates

“This fall in rates is mainly due to the seasonal downturn, high inventories, continuing strong flows from the US to Europe and bearish sentiments. This has been compounded by increased availability of relets,” said the Partnership, citing various sources.

One-year time charter rates for tri-fuel diesel-electric propulsion (TFDE) carriers averaged $155,000 per day in the first quarter of 2023, about 18 percent lower than rates in the fourth quarter of 2022, reflecting the seasonal downturn.

Earnings highlights during the first quarter included the Partnership’s sale and bareboat lease-back of the 155,000 cubic metres capacity TFDE vessel “GasLog Sydney”.

The deal was with a wholly-owned subsidiary of China Development Bank Leasing and with no repurchase option or obligation.

The company said a time-charter agreement for the TFDE carrier “GasLog Geneva with a wholly-owned subsidiary of Shell was extended by five years after the exercise of their extension option.

The merger transaction with GasLog Ltd is expected to close by the end of the third quarter of 2023, subject to approval of the holders of a majority of the common units of the Partnership and the satisfaction of certain closing conditions.

GasLog Ltd owns 30.2 percent of the common units of the Partnership and has entered into a support agreement with the Partnership.

“The entering into an Agreement and Plan of Merger with GasLog is a transformative transaction for the Partnership that will enable its unitholders to take advantage of a significant premium to the unit trading price,” said Paolo Enoizi, Chief Executive.

The Partnership’s owned and bareboat fleet comprises the following vessels: “GasLog Sydney”, “GasLog Geneva”, “Methane Rita Andrea”, “Methane Alison Victoria”, “GasLog Gibraltar”, “Solaris”, “GasLog Santiago”, “GasLog Seattle”, “Methane Jane Elizabeth”, “Gaslog Greece”, “GasLog Glasgow” and “Methane Becki Anne”.

April 7 (LNGJ) - GasLog Ltd and GasLog Partners LP have entered into a definitive merger agreement with GasLog acquiring all the outstanding common units of the Partnership. GasLog is also acquiring the common units of the Partnership not already owned by GasLog for $8.65 in cash per common unit. The transaction is expected to close by the end of the third quarter of 2023.

   GasLog’s current consolidated fleet consists of 38 LNG carriers with 33 on the water, four under construction and one vessel undergoing conversion into a floating storage and regasification unit. Of these vessels, 18 are owned by GasLog, six have been sold and leased back by GasLog under long-term bareboat charters and of the remaining 14 LNG carriers, 11 are owned by GasLog Partners with three sold and leased back by the Partnership.

GasLog Ltd, the Greek LNG shipping company, has announced executive changes at the top with the decision of Chief Executive Paul Wogan to retire from his position on March 9, 2022.

“He will remain, in an advisory role until June 30, 2022 to ensure a smooth transition,” said GasLog.

The GasLog board named Paolo Enoizi, currently Chief Operating Officer of GasLog Ltd and CEO of US affiliate GasLog Partners LP. As the new CEO of GasLog Ltd, effective March 10, 2022.

GasLog is currently expanding its fleet and has ordered four newbuild 174,000 cubic metres capacity vessels for delivery in 2024 and 2025.

GasLog Ltd ordered the vessels from South Korea shipyard Daewoo Shipbuilding and Marine Engineering.

The four newbuilds will have latest generation M-type Electronically Controlled, Gas Injection (MEGI) propulsion system.

GasLog completed a merger in June 2021 with BlackRock’s Global Energy and Power Infrastructure division and de-listed its common shares from the New York Stock Exchange.

Structure

GasLog’s ownership structure has three main shareholders in both companies, parent GasLog Ltd and subsidiary GasLog Partners LP.

They are the Greek Livanos family with 55 percent, the Monaco-based Onassis Foundation with 12 percent and BlackRock’s Global Energy and Power infrastructure fund (GEPIF), holder of 45 percent of the equity.

GasLog Ltd, whose Chairman remains Peter G. Livanos, has an LNG fleet comprising 20 vessels, 12 dual-fuel, seven tri-fuel, diesel electric (TFDE) and one steam-turbine carrier.

Subsidiary GasLog Partners LP owns 15 LNG carriers, including 10 tri-fuel-diesel-electric (TFDE) ships and five steam-turbine vessels.

The GasLog business has undergone a substantial overhaul in recent years to improve efficiency and to reduce overheads.

This followed its decision in November 2019 to move its headquarters from Monaco to the Greek port of Piraeus, home of its operational platform.

Höegh LNG Holdings, the Norwegian shipping company acquired in a takeover by Norwegian interests and a unit of US investment bank Morgan Stanley and de-listed, said it was seeking a new Chief Executive and President after Sveinung J. S. Støhle said he was stepping down after 15 years in charge.

GasLog Ltd, the operator of a fleet of 35 LNG carriers, has completed its merger transaction with the infrastructure unit of the giant US asset management firm BlackRock and the company has now been taken private.